Millions of homeowners to pay mortgage in retirement

Posted: 26 Sep 2006 15:14:28 GMT

More than a third of UK homeowners expect to be paying their mortgage over the age of 60.

More than a third of UK homeowners (36 per cent) are likely to be forced to pay off their mortgage in retirement, a new study shows.

Research by mortgage provider The One Account reveals that many people face the prospect of working in retirement to pay off their home loan.

A total of 43 per cent of respondents to the poll reported that their mortgage prevented them from saving, while 17 per cent of those aged 25 to 29 said that their mortgage repayments were stopping them from beginning a family.

A fifth of homeowners (20 per cent) claim that they will not be able to pay off their mortgage until they are in their 50s, but the majority of those quizzed saw owning a home as a priority.

Debbie Milsom from The One account said: "Paying off a mortgage should not mean that people have to put their life plans on hold… A mortgage is perceived by many to be a huge burden but there are ways that people can manage these payments in a flexible way - giving them the opportunity to pay off their mortgage early."

A number of recent studies have indicated that first-time buyers are increasingly struggling to get a foot on the property ladder as house prices continue to rise above the rate of wage inflation, with many forced to turn to friends, parents and relatives for help.

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